Reserve Bank of India has expanded the repo rate or prime loaning rate by 50 premise focuses to 5.90 percent
RBI Governor Shaktikanta Das said while announcing the decisions of the Monetary Policy Committee (MPC). The central bank had recently increased the repo rate four times since May to 5.90 per cent.
MPC of the Reserve Bank of India has decided to raise the repo rate by a majority of five out of six votes. The decision was prompted by the urgency to control inflation levels and adverse action by global central banks, MPC member Shaktikanta Das said.
The world is in the midst of a third major shock arising from monetary tightening and aggressive communications from advanced countries' central banks, says RBI governor Shaktikanta Das.
This revision comes as analysts predicted a 50 bps hike in repo rate due to global situations. The Reserve Bank of India (RBI) has raised repo rate by 140 basis points since May.
Business Today poll shows that majority of respondents expect the central bank to go for a 50 basis points hike in interest rates.
Home, car and personal loans will become more expensive as the cost of borrowing will go up.
You could cut down non-essential expenses to save money for pre-payments. Adhil Shetty, CEO of Bankbazaar.com recommends pre-payment in any shape and form.
Sensex opened 0.28 per cent down at 56,251.19 whereas Nifty50 opened at 16,818.10. Indian Rupee, on the other hand, rose 14 paise to 81.59 against the US Dollar in early trade.